Long-Term Performance in Service Economy: Multi-Methodology Comparison and Policy Recommendations

Long-terms performance in Service Economy is very crucial indicator for policy maker. Since the service economy has been playing a more important role in economic growth, it also raise up the request for evaluating service economy in different perspective, including long-term performance. We introduce HP filter, univariate and bivariate unobserved components model, a structural VAR model in this paper to estimate long-term performance for China´s Service Economy as a whole. We concluded that long-term performance in China´s service economy has been growing since the Reform began. Lately, it´s also showing a steady trend in post-WTO period. Policies related to service economy should pay more attention to increase the competition of China´s service economy in an international perspective.